What is Transfer of Equity?
A Transfer of Equity is a legal transaction where an individual is added or removed from the ownership of a property.
When May I Need to Arrange a Transfer of Equity?
Some common examples include:
- Removing an ex-partner from the title deeds if you have separated
- Adding a partner to your title deeds
- Changing the percentage of shares owned in a jointly owned property
- The transfer of a property between family members
- The property is being gifted
- A Court order requesting for the transfer of a property
What Does the Equity in Your Home Mean?
Equity is the value of how much of your property you own. For example, if your house or flat is worth £250,000 and your mortgage balance is £50,000, you have £200,000 equity in the property.
What Does the Transfer of Equity Process Involve?
The first step is for your Conveyancing Solicitors to review the title deeds for the property. It’s necessary to check whether there are any mortgages on the property or whether there are any restrictions that may affect the property.
Once your Conveyancing Solicitor has carried out the necessary legal checks on the title deeds, they will prepare the Transfer Deed. The Transfer Deed (TR1) is the Land Registry form used to remove the current owners from the title deeds and add any new owners.
What Will Happen with Any Current Mortgages on the Property?
If the property is subject to a mortgage, the consent of the mortgage lender will be required to proceed with the transfer. If a person is being removed from the title deeds, the mortgage lender will need to be satisfied that the remaining owners are able to keep up with the mortgage payments before providing their consent to proceed with the transfer of equity.
Our Conveyancers or Conveyancing Solicitors can assist with any questions you may have regarding current mortgages on your property.
What If the Mortgage Lender Doesn’t Agree to the Transfer?
If the mortgage lender doesn’t agree to the transfer, there are still alternative options that may apply to allow the transfer to proceed.
Our Conveyancing Solicitors can discuss the alternative options available to you if your lender doesn’t agree to the transfer. Get in touch with us to discuss your options.
Simpson Millar Solicitors are a national law firm with over 500 staff and offices in Billingham, Bristol, Cardiff, Catterick, Lancaster, Leeds, Liverpool, London and Manchester.